Located at 20 Nettleton Road in Clifton, Cape Town, is the most expensive home on sale this summer.
While its listing says “price on application”, the seller is apparently expecting R200 million. This is according to Jo Lombard, luxury market specialist at Seeff Atlantic Seaboard properties.
The most expensive apartment sold in Clifton to date went for R198 million in 2012, while the most expensive property on Nettleton Road achieved a price of R120 million in 2017, says Ross Levin, MD of Seeff Atlantic Seaboard and City Bowl.
Lombard says this street now has an average asking price of R150-200 million and the current listing is sited on a 1 481m² plot, one of the widest on the road.
Properties of this calibre do not become available often, he says, adding that this one has, in the main, attracted the attention of foreign buyers although some high-profile potential local buyers have also shown interest.
So far, the most expensive property to change ownership in Clifton this year was sold for R30 million.
Luxury property woes
Sales volumes and prices have seen a considerable decline in the luxury market compared to 2019, according to Seeff Properties.
Super luxury sales, which is defined as sales above R20 million, amounted to R590.3 million collectively across the Atlantic Seaboard for 2020. In contrast, says Levin, this figure reached just under R865.6 million in 2019.
In terms of volume, 2019 saw 27 sales compared to the 18 concluded thus far this year.
Luxury sales (above R10 million) have also taken a hit across the Atlantic Seaboard.
Although 76 such sales have been recorded so far in 2020, compared to 79 in 2019, the combined value has dropped by approximately R300 million this year.
The busiest price band in luxury areas is for houses below R10 million in Fresnaye and Bantry Bay, according to Lombard.
In Bantry Bay, 17 sales have been recorded this year amounting to just over R72.4 million for this price band. This is an increase from 2019’s figures which only logged 10 sales, amounting to just under R47 million. Total sales for houses over R10 million in Bantry Bay increased by over R90 million this year, says Levin.
Fresnaye saw 16 sales this year for houses under R10 million. Unlike Bantry Bay, Fresnaye has not been able to outperform 2019 this far as sales in this band are around R34.3 million lower than the previous year.
A slow year
“It has been a slow year for the luxury market, but we are expecting [that] things will start improving soon,” says Lombard.
This can in part be attributed to the pandemic, he maintains, which has affected foreign investment into luxury property.
“Many of our investors are foreign investors in the luxury market. And as a result of restrictions on travel a lot of the foreign investors couldn’t make it into South Africa this year, and that has impacted the ability to view properties and to buy them,” he explains.
Top sales recorded on Nettleton Road
Notable sales in Clifton over the past few years
* Michael Brown is a Moneyweb intern.